Raihan Bugis
Universitas Islam Negeri Sumatera Utara

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Sectoral Economic Dynamics in South Tapanuli Regency: Evidence from LQ and Shift Share Approaches Raihan Bugis; Isnaini Harahap; Purnama Ramadani Silalahi
Jurnal Investasi Islam Vol. 11 No. 1 (2026): Jurnal Investasi Islam (JII)
Publisher : FEBI IAIN Langsa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32505/jii.v11i1.14931

Abstract

This study analyzes leading and potential economic sectors in South Tapanuli Regency, North Sumatra, in the post-pandemic period using the Location Quotient (LQ) and Shift Share methods based on Gross Regional Domestic Product (GRDP) at constant prices from 2021–2024. Unlike previous studies that primarily focus on descriptive sectoral contributions, this research integrates comparative and competitive advantage analyses to provide a more comprehensive understanding of regional economic dynamics. The LQ analysis identifies three base sectors: Agriculture, Forestry, and Fisheries (average LQ = 1.8222); Mining and Quarrying (average LQ = 8.6937); and Public Administration, Defence, and Compulsory Social Security (average LQ = 1.7817). Meanwhile, the Shift Share analysis reveals that eleven sectors possess positive competitive advantages (Cij > 0). The combined results classify two sectors as leading sectors, one sector as potential, nine sectors as developing, and five sectors as lagging. However, the Public Administration sector should be interpreted as an administratively dominant sector rather than a productive market-driven source of regional competitiveness. The findings indicate that post-pandemic economic strengthening in South Tapanuli should prioritize productive base sectors, enhance the competitiveness of developing sectors, and encourage regional economic diversification. Theoretically, this study demonstrates the relevance of integrating LQ and Shift Share approaches in analyzing regional sectoral transformation. Practically, the results provide evidence-based insights for local governments in designing policies related to resource allocation, productive sector development, and regional competitiveness enhancement.